Fill and Sign the Girl Scout Cookies Order Form

CHAPTER 6 Operational Data STATUS OF FINANCIAL ASSETS (NON-CONSOLIDATED) 1. Status of Non-Performing Assets According to Borrower Classification 2. Status of Risk-Monitored Loans 3. Status of Loans in Trust from Contract for Replacement of Loss 4. Ability to Pay Benefits (Solvency Margin Ratio) 5. Unrealized Gain/Loss from Assets (Company Total) 6. Data on Market Value of Securities (Company Total) 7. Data on Market Value of Assets Held in Trust (Company Total) 8. Data on Market Value of Derivatives Transactions, Combined Total with and without Hedge Accounting Applied (Company Total) 9. Operating Income (Ordinary Income) 118 118 118 119 120 122 123 124 129 MAIN BUSINESS INDICATORS 10. Policies in Force and New Policies 11. Annualized Premiums 12. New Policies by Product 13. Policies in Force by Product 14. Amount of Policies in Force by Coverage Type 15. Individual Insurance and Annuity Policy Amounts in Force by Product 16. Trends and Transitions of Policies 130 130 131 133 135 136 137 INSURANCE POLICY INDICATORS 17. Increase in Policy Amounts in Force 139 18. Increase in New Policies 139 19. Average Policy Coverage (Individual Insurance) 140 20. Rate of Increase in Number of New Policies (Compared with Beginning of Same Fiscal Year) 140 21. Rate of Cancellation and Lapse (Compared with Beginning of Same Fiscal Year) 140 22. Average New Policy Premium (Individual Insurance Policies with Annualized Monthly Payments) 141 23. Mortality Rate (Primary Individual Insurance Policies) 141 24. Incidence of the Events Covered by Riders (Individual Insurance) 141 25. Grounds for Third-Sector Insurance Benefits or Percentage of Premium Earned of Insured Amount Classified by Type of Insurance 141 26. Operating Efficiency (Operating Expenses as a Percentage of Premium Revenues) 141 27. The Number of Major Insurance Companies That Use Reinsurance to Protect against Shifts in the Market for Insurance Policies That Will Cause Demand in Excess of Their Allowable Coverage 142 28. The Ratio of Reinsurance Premiums to Total Premiums Written by the Top Five Insurance Companies Using Reinsurance to Protect against Shifts in the Market for Insurance Policies That Will Cause Demand in Excess of Their Allowable Coverage 142 29. A Percentage Breakdown of the Major Insurance Companies According to Ratings Awarded by Rating Agencies Based on the Amount of Reinsurance Such Companies Hold in Order to Cover Policies in Excess of Their Solvency Margins 142 30. Unreceived Reinsurance Premiums 142 ACCOUNTING INDICATORS 31. Reserve for Outstanding Claims 32. Policy Reserve 33. Policy Reserve Balance 34. Policy Reserve for Individual Insurance and Pensions (by Policy Year) 35. Insurance Policies in the Separate Account: The Policy Reserve Balance of the General Account as well as the Calculation Method and Integers Used as the Basis for Calculations Related to Insurance Policies That Guarantee a Minimum Amount of Insurance Benefits 36. Confirmation of Reasonableness and Validity of Insurance Business Law Item 1, Paragraph 1 of Article 121 (Limited to That Relating to Third-Sector Insurance) 37. Reserve for Dividends to Policyholders 38. Allowance for Doubtful Accounts and Other Reserves 39. Status of Allowance for Specialized Overseas Debt 40. Insurance Premiums 41. Death and Other Insurance Claims 42. Annuity Payments 43. Health and Other Benefits 44. Surrender Benefits 45. Depreciation 46. Operating Expenses 47. Tax Expenses 48. Lease Transactions 143 143 143 143 157 157 157 158 158 159 160 160 160 161 161 162 162 162 163 163 163 164 164 166 166 166 167 SECURITIES INDICATORS (GENERAL ACCOUNT) 82. Market Value of Securities (General Account) 83. Data on Market Value of Assets Held in Trust (General Account) 84. Qualitative Information on Derivatives Transactions (General Account: Excludes Proprietary Trading Securities) 85. Credit Risk Amounts (General Account) 86. Market Value of Derivatives Transactions, Combined Total with and without Hedge Accounting Applied (General Account) 168 169 170 170 171 SEPARATE ACCOUNT INDICATORS 87. Separate Account Asset Balance 88. Status of Separate Account Assets for Individual Variable Insurance 175 175 STATUS OF SEPARATE ACCOUNT FOR INDIVIDUAL VARIABLE INSURANCE 89. Amounts of Policies in Force (Separate Account for Individual Variable Insurance) 90. Breakdown of Separate Account Assets Year-End Balance (Individual Variable Insurance) 91. Investment Income from Separate Account (Individual Variable Insurance) 92. Data on Market Value of Securities in Separate Account (Individual Variable Insurance) 93. Data on Market Value of Assets Held in Trust in Separate Account (Individual Variable Insurance) 94. Qualitative Information on Derivatives Transactions (Separate Account for Individual Variable Insurance) 95. Qualitative Data on Derivatives Transactions, Combined Total with and without Hedge Accounting Applied (Separate Account for Individual Variable Insurance) 176 176 176 177 177 177 177 STATUS OF SEPARATE ACCOUNT FOR INDIVIDUAL ANNUITIES 144 144 145 145 146 146 147 148 149 150 151 151 151 152 INDICATORS RELATED TO ASSET MANAGEMENT (GENERAL ACCOUNT) 49. Overview of the Fiscal Year Ended March 31, 2009 Asset Management (General Account) 50. Portfolio Trends (General Account) 51. Average Balance and Yield on Primary Assets (General Account) 52. Investment Income (General Account) 53. Investment Expenses (General Account) 54. Interest, Dividends and Other Income (General Account) 55. Analysis of Interest, Dividends and Other Income (General Account) 56. Gain on Sales of Securities (General Account) 57. Loss on Sales of Securities (General Account) 58. Loss on Valuation of Securities (General Account) 59. Proprietary Trading Securities (General Account) 60. Proceeds on Sales of Proprietary Trading Securities (General Account) 61. Securities Composition (General Account) 62. Securities by Maturity Date (General Account) 63. Bond Yield (General Account) 64. Stocks Held—Breakdown by Industry (General Account) 65. Loans Receivable (General Account) 66. Industrial and Consumer Loans by Contractual Maturity Date (General Account) 67. Corporate Loans to Domestic Companies by Company Size (General Account) 68. Breakdown of Industrial and Consumer Loans by Industry (General Account) 69. Breakdown of Industrial and Consumer Loans by Use (General Account) 70. Breakdown of Domestic Corporate Loans by Region (General Account) 71. Breakdown of Industrial and Consumer Loans by Collateral (General Account) 72. Tangible Fixed Assets (General Account) 73. Appraisal Value of Real Estate (General Account) 74. Breakdown of Real Estate Holdings by Use (General Account) 75. Gain and Loss on the Disposal of Fixed Assets (General Account) 76. Depreciation on Tangible Fixed Assets, Intangible Fixed Assets and Other Assets Held for Leasing (General Account) 77. Status of Overseas Loans and Investments (General Account) 78. Yield on Overseas Loans and Investments (General Account) 79. Summary of New Public-Sector Investment Underwriting and Loans (General Account) 80. Breakdown of Other Assets (General Account) 81. Loan Interest Rates 153 154 155 155 155 156 156 156 156 156 96. Amounts of Policies in Force (Separate Account for Individual Variable Annuities) 97. Breakdown of Separate Account Assets Year-End Balance (Separate Account for Individual Variable Annuities) 98. Investment Income from Separate Account (Separate Account for Individual Variable Annuities) 99. Market Value of Securities in Separate Account (Separate Account for Individual Variable Annuities) 100. Market Value of Assets Held in Trust in Separate Account (Separate Account for Individual Variable Annuities) 101. Qualitative Data on Derivatives Transactions in Separate Account (Separate Account for Individual Variable Annuities) 102. Data on Market Value of Derivatives Transactions in Separate Account, Combined Total with and without Hedge Accounting Applied (Separate Account for Individual Variable Annuities) 179 179 179 179 179 179 180 STATUS OF SEPARATE ACCOUNT FOR GROUP ANNUITIES 103. Separate Account Assets by Product (Separate Account for Group Annuities) 104. Status of First Treaty—Comprehensive Account (Separate Account for Group Annuities) 105. Status of First Treaty—Accounts by Investment Category (Separate Account for Group Annuities) 180 180 181 STATUS OF FINANCIAL ASSETS (CONSOLIDATED) 106. Nippon Life Group Performance 107. Principal Indicators of Operating Performance (Consolidated) 108. Status of Non-Performing Assets According to Borrower Classification (Consolidated) 109. Status of Risk-Monitored Loans (Consolidated) 110. Status of Insurance Claims Paying Ability of Insurance Subsidiaries (Solvency Margin Ratio) 111. Segment Information 182 183 183 184 184 184 ✳All figures are rounded down to the nearest unit. ✳% and 00/0 are rounded to the nearest figure. 117 STATUS OF FINANCIAL ASSETS (NON-CONSOLIDATED) 1. Status of Non-Performing Assets According to Borrower Classification Millions of Yen, % As of March 31 2009 ¥ 2008 12,453 ¥ 2007 Bankrupt and quasi-bankrupt 1 12,522 ¥ Doubtful 2 29,394 44,014 11,518 47,756 Substandard 3 1,323 5,923 4,890 Subtotal 43,172 62,460 64,166 [Percent of total] [0.41%] [0.52%] [0.48%] Normal Total 4 10,560,212 11,858,469 13,365,713 1+2+3+4 ¥10,603,384 ¥11,920,929 ¥13,429,879 Notes: 1. 1) Bankrupt and quasi-bankrupt are non-performing assets and similar loans made to an obligor that has fallen into bankruptcy due to reasons including the start of bankruptcy proceedings, start of reorganization proceedings or an application to start rehabilitation proceedings. 2) Doubtful are non-performing assets with a strong likelihood that loan principal cannot be recovered or interest cannot be received according to the contract, owing to difficulties in the financial condition and business performance of the obligor who has not yet entered bankruptcy. 3) Substandard are delinquent loans overdue three months or more and restructured loans. Delinquent loans overdue three months or more are loans in arrears three months or more from the due date of interest or principal under terms of the related loan agreements. Restructured loans are loans where certain concessions favorable to borrowers (such as interest reduction or exemption, postponement of principal or interest payment, release of credit and other methods), were made with the object of reconstructing and supporting the operations of borrowers. 4) Normal are loans that do not fall under the classifications for 1) to 3)above, and where the obligor has no financial or business performance problems. 2. Classifications and calculation methods used in this table are based on the Ordinance for Enforcement of Insurance Business Law. The table includes loans, securities loaned, accrued interest, suspense payments, customers’ liabilities for acceptances and guarantees and private placements guaranteed by financial institutions. 3. Loans subject to bankruptcy rehabilitation, reorganization and other proceedings are directly deducted from total loans as estimated uncollectible amounts calculated by subtracting estimated collectable amounts based on collateral and guarantees from total loans. These amounts were ¥7,196 million for bankruptcy and quasi-bankruptcy as of March 31, 2009; ¥4,863 million for bankruptcy and quasi-bankruptcy as of March 31, 2008; and ¥4,163 million for bankruptcy and quasi-bankruptcy as of March 31, 2007. 2. Status of Risk-Monitored Loans Millions of Yen, % As of March 31 2009 2008 2007 Loans to bankrupt borrowers 1 ¥ 3,415 ¥ 3,372 ¥ 4,491 Delinquent loans 2 38,426 53,148 54,771 Loans that are delinquent for over three months 3 — 435 531 Loans for restructuring Total 4 1,323 5,488 4,359 1+2+3+4 ¥43,165 ¥62,444 ¥64,153 [0.65%] [0.66%] [Percent of total loans receivable] [0.47%] Notes: 1. Loans to bankrupt borrowers and quasi-bankrupt borrowers (including collateralized and guaranteed loans) are directly deducted from total loans as estimated uncollectible amounts calculated by subtracting estimated collectable amounts based on collateral and guarantees from total loans. These amounts were ¥6,000 million for loans to bankrupt borrowers and ¥1,196 million for delinquent loans as of March 31, 2009; ¥1,112 million for loans to bankrupt borrowers and ¥3,750 million for delinquent loans as of March 31, 2008; and ¥1,711 million for loans to bankrupt borrowers and ¥2,451 million for delinquent loans as of March 31, 2007. 2. 1) Loans to bankrupt borrowers are loans to obligors that are legally bankrupt through filings for proceedings under the Corporate Reorganization Law, Civil Rehabilitation Law, Bankruptcy Act or Company Law; loans to obligors that have notes suspended from trading on exchanges; loans to obligors that have filed for legal proceedings similar to the aforementioned proceedings based on overseas laws, within loans (accrued interest unrecorded loans) for which accrued interest was not recorded and on which principal and interest payments have remained in arrears; and loans that for other reasons the Company is not expecting repayment or collection of principal or interest. 2) Delinquent loans are loans other than those with flexible interest payment terms and conditions made in order to support the business rebuilding of obligors and the aforementioned loans to bankrupt borrowers as accrued interest unrecorded loans. 3) Loans that are delinquent for over three months are loans that are neither loans to bankrupt borrowers or loans in arrears, with principal and interest payment in arrears for more than three months after the day following the contract payment date. 4) Loans for restructuring are loans with beneficial arrangements given to the obligor, including interest reduction or exemption, relaxed interest payments, relaxed principal repayments and loan forgiveness, in order to support the rebuilding of operations at the obligor and are neither loans to bankrupt borrowers, loans in arrears, or loans three months or more in arrears. 3. Based on the results of asset self-assessment, accrued interest on loans is not recorded as revenues for obligors that are bankrupt, essentially bankrupt or nearing bankruptcy. 6 Operational Data 3. Status of Loans in Trust from Contract for Replacement of Loss 118 No data as there was not an ending balance from the fiscal year ended March 31, 2007 to the fiscal year ended March 31, 2009. 4. Ability to Pay Benefits (Solvency Margin Ratio) Millions of Yen As of March 31 2009 2008 2007 (A) ¥4,800,915 ¥8,217,904 ¥11,113,889 2,653,864 3,301,725 3,234,550 Total net assets 1 1,118,048 1,067,608 1,065,989 Reserve for price fluctuations in security investments 2 372,013 487,263 467,263 Contingency reserve 3 864,445 1,429,062 1,429,062 Total solvency margin Foundation funds (kikin) and reserves, etc. General allowance for doubtful accounts 4 16,250 19,071 14,249 Other 9 283,107 298,719 257,987 Net unrealized gain on available-for-sale securities x 90% (if negative, x 100%) 5 389,725 3,212,612 6,458,287 Net unrealized gain on real estate x 85% (if negative, x 100%) 6 225,883 297,510 164,166 Excess of continued Zillmerized reserve 7 1,424,104 1,271,175 — Deduction clause 8 (272) (194) (419) Other Total amount of risk Underwriting risk √(R1+R8)2+(R2+R3+R7)2 +R4 9 107,609 135,075 1,257,304 (B) 1,061,664 1,420,785 1,677,668 R1 10 154,192 158,600 244,095 Underwriting risk of third-sector insurance R8 11 75,916 77,210 — Anticipated yield risk R2 12 189,925 203,823 219,410 Investment risk R3 13 810,106 1,154,090 1,395,262 Business management risk R4 14 24,821 32,086 37,323 Minimum guarantee risk R7 15 10,952 10,616 7,408 904.4% 1,156.8% 1,324.9% Solvency margin ratio (A) (1/2) x (B) x 100 Notes: 1. These figures are calculated based on Article 86 and Article 87 of the Ordinance for Enforcement of Insurance Business Law and Ordinance No. 50 issued by the Ministry of Finance in 1996. (Excess of continued Zillmerized reserve is calculated based on Article 1, Paragraph 3, Item 1 of the Insurance Business Law and Ordinance No. 50. Excess of continued Zillmerized reserve for the fiscal year ended March 31, 2007 includes “Other.”) 2. The figures shown in “Foundation funds” are after appropriation of surplus. The figures as of March 31, 2009, 2008 and 2007 have been calculated by subtracting the estimate and exchange variance from total net assets on the balance sheet. 3. From March 31, 2008 the solvency margin ratio is calculated including “Underwriting risk of third-sector insurance R8 .” (The amount as of March 31, 2007 contain figures based on the criteria of the fiscal year.) 4. Minimum guarantee risk R7 is calculated using standard methods. 9. Other The total amount of a part of dividend reserves on the balance sheets, future profit (average value of the provision for reserve for dividends to policyholders over the last five fiscal years or the most recent fiscal year, 50% of whichever is less) and tax amounts corresponding to contingency reserves under net assets. 10. Underwriting Risk Shows the amount for dealing with underwriting risk (out of risk of actual insurable incidents occurring at a higher frequency than generally expected; risk that applies to thirdsector insurance). 11. Underwriting Risk of Third-Sector Insurance Shows the amount for dealing with underwriting risk of third-sector insurance (out of risk of actual insurable incidents occurring at a higher frequency than generally expected, risk that applies to third-sector insurance). 12. Anticipated Yield Risk Shows the amount for dealing with anticipated yield risk (risk of not being able to secure an anticipated yield that serves as the basis for calculating policy reserves). 13. Investment Risk Shows the amount for dealing with investment risk (in risks related to asset management, those risks arising from reasons other than more than generally expected price fluctuations of held securities and other assets). 14. Business Management Risk Shows the amount for dealing with business management risk (with regard to risks arising at a greater than expected frequency, those risks that do not fall under the category of underwriting risk, underwriting risk of third-sector insurance, anticipated yield risk, asset management risk and minimum guarantee risk are included in this category). 15. Minimum Guarantee Risk Shows the amount for dealing with minimum guarantee risk (in insurance policies in the separate account, those policies that guarantee a minimum amount of insurance benefits, the risk that said insurance policies and the value of assets belonging to the separate account when paying said insurance benefits, will fall below the amount of minimum guaranteed insurance benefits, and the risk arising from greater than expected price fluctuations for assets belonging to said special account). 6 Operational Data 1. Foundation Funds The amount after excluding estimated distributed income (interest on foundation funds and provision for reserve for dividends to policyholders) from the appropriation of surplus plus total valuations, conversions and others included under total net assets on the balance sheets. 2. Reserve for Price Fluctuations in Security Investments The amount of the reserve for price fluctuations in security investments on the balance sheets. 3. Contingency Reserve The amount of the contingency reserve, which is a part of policy reserve on the balance sheets. 4. General Allowance for Doubtful Accounts The amount of the general allowance for doubtful accounts, listed as allowance for doubtful accounts on the balance sheets. 5. Net Unrealized Gain/Loss on Available-for-Sale Securities If the difference between the total amount of securities on the balance sheet and the total book value is positive, multiply by 90%, if negative, multiply by 100% and record the resulting amount. 6. Net Unrealized Gain/Loss on Real Estate If the difference between the total market value of real estate and the total book value is positive, multiply by 85%, if negative, multiply by 100% and record the resulting amount. The difference between the market value and book value of real estate includes revaluation reserve for land on the balance sheet and the total deferred tax liabilities for revaluation reserve on the balance sheets. 7. Excess of Continued Zillmerized Reserve An amount that exceeds either the continued Zillmerized reserve or the amount of surrender benefits out of policy reserves (excluding the contingency reserve) on the balance sheet, whichever is greater. 8. Deduction Clause The deduction clause improves the ability to pay, for example, the insurance claims of other insurance companies and to raise the capital adequacy ratio of subsidiaries (when banks, etc. are made into subsidiaries, etc.), in cases where the shares and other means of capital procurement of the aforementioned other insurance companies or subsidiaries are held intentionally, by enabling the deduction of the amount of those means of capital procurement from the solvency margin ratio. 119 5. Unrealized Gain/Loss from Assets (Company Total) Billions of Yen As of March 31 2009 Book value Market value (appraisal value) Cash, deposits and call loans Net gain/loss ¥ 2008 762.1 ¥ 2007 696.7 ¥ 1,065.3 762.1 696.7 1,065.3 0.0 0.0 (0.0) Gain 0.0 (0.0) (0.0) — — 2.0 Market value (appraisal value) Proprietary trading securities 0.0 (0.0) Book value *1 0.0 Loss — — 2.0 Net gain/loss — — — — — — Book value 114.6 170.5 195.5 Market value (appraisal value) 114.6 170.5 195.5 — — — Gain — — — Loss — — — Book value 30,901.7 30,436.0 30,154.3 Market value (appraisal value) Investments in securities*3 — — Loss Assets held in trust*2 — Gain 31,897.2 34,541.9 37,612.3 995.5 4,105.8 7,457.9 1,855.9 4,470.3 7,596.6 Net gain/loss Net gain/loss Gain Loss (364.5) (138.6) 9,133.4 9,553.3 9,726.7 Market value (appraisal value) Loans receivable (860.3) Book value 9,133.4 9,553.3 9,726.7 — — — Net gain/loss Gain — — — 1,167.4 1,167.3 1,155.8 Market value (appraisal value) Real estate — — Book value *4 — Loss 1,348.1 1,428.9 1,254.4 Net gain/loss Gain Loss 180.7 261.6 98.5 318.1 384.3 238.2 2,582.2 2,384.1 22.8 38.7 18.1 26.2 39.5 22.3 (3.4) (0.7) (4.2) 45,392.8 44,567.4 44,665.9 Market value (appraisal value) 46,591.9 48,973.7 52,240.6 1,199.0 4,406.2 7,574.6 Gain 6 Operational Data 3,336.1 Book value 120 2,366.0 Loss 2,200.4 4,894.2 7,857.3 Loss *1 *2 *3 *4 (139.7) 2,543.4 Gain Total assets (122.6) 3,313.3 Market value (appraisal value) Other assets (137.4) Book value (1,001.3) (487.9) (282.6) Net gain/loss Net gain/loss Proprietary trading securities, include securities with market values calculated using theoretical prices. Market value calculations are based on prices rationally calculated by the trustee of assets held in trust. Book value includes net gain/loss related to derivatives transactions within assets held in trust. Investments in securities include securities with market values calculated using theoretical prices. Securities also include securities loaned. Real estate is the total of the land account and leasehold account. The market value of real estate (land + land lease rights) is calculated with reference to publicly disclosed appraisal values. The Company reappraised land for business use based on the Law for the Revaluation of Land. Book value includes revaluation differences of ¥85.0 billion as of March 31, 2009; ¥88.3 billion as of March 31, 2008; and ¥94.5 billion as of March 31, 2007. Asset Self-Assessment Asset self-assessment is used to categorize retained assets in rankings based on the debtor’s income status and recoverability through collateral and other means. Nippon Life had defined strict assessment standards that are in compliance with the FSA’s Inspection Manual for Insurance Companies and conducts internal audits via an auditing division that is independent of the division implementing the assessment. In addition, it undergoes external audits conducted by an external auditing firm. Self-assessment categories Debtor category Normal Recoverability through collateral and guarantees (see Notes) b) c) a) Status of debtors d) Debtors whose performance is sound and for whom there are no specific concerns regarding their financial situation. Debtors with caution needed such as debtors whose loan terms and conditions have been eased or whose loan repayment performance is poor, and debtors posting a loss, or whose performance is sluggish or unstable. Of above, debtors whose loan terms and conditions have been eased or who are delinquent for the past three months or more from the due date. Non-categorized 1 On caution Non-categorized 2 II Categorized 2 Substandard II Categorized 3 Debtors who are not bankrupt at present, but for whom the possibility of bankruptcy in the near future is high owing to their financial difficulties. Doubtful Non-categorized II Categorized III Categorized 4 Quasi-bankrupt Non-categorized II Categorized III Categorized 4 IV Categorized 5 Bankrupt Non-categorized II Categorized III Categorized 4 IV Categorized 5 Notes: Debtors who are essentially bankrupt. Although there is no legal or formal evidence of bankruptcy, the debtor is in serious financial difficulty and there is no prospect of revitalization. Debtors that are legally or formally bankrupt as a result of having entered bankruptcy, liquidation, corporate reorganization, corporate rehabilitation or civil rehabilitation procedures. Categories for collateral/guarantee-based recoverability a) Estimation of disposal of solid collateral and solid guarantee b) Estimation of disposal of general collateral and general guarantee c) Portion for which recovery through guarantees is uncertain, calculated as the difference between estimates of the collateral amount and disposal amount d) Portions other than a)-c) that are deemed irrecoverable Self-assessment debtor classifications and relationship of disclosed non-performing debt (as of March 31, 2009) Debt based on Financial Reconstruction Law Self-assessment debt classification ( Applicable categories related to loans: Loans, securities loaned, accrued interest, suspense payments, customer’s liabilities for acceptance and guarantees, private placements guaranteed by financial institution Normal On caution Doubtful Quasi-bankrupt Bankrupt Normal Substandard Doubtful Risk-monitored loans (Applicable: Only to loans) ) Restructuring Delinquent for over three months Delinquent Bankrupt and quasi-bankrupt ¥43.1 billion Percentage of total bonds 0.41% Bankrupt ¥43.1 billion Percentage of total bonds 0.47% State of loan category amount (loans) Billions of Yen, % As of March 31, 2009 Loan balances (After direct IV categorized write-off) Non-categorized II Categorized III Categorized IV Categorized Money available ¥9,133.4 8,898.7 231.0 3.7 — Percentage of whole 100.0% 97.4 2.5 0.0 — Note: IV categorized was ¥7.1 billion after the direct write-off of loans. In order to take appropriate measures against bad debt, Nippon Life has created the following types of reserve principles for self-assessment categories 1–5, as noted in the table of self-assessment categories, and builds reserves (bad-debt accounting) in accordance with these principles. Reserve principles: ● Normal: General bad-debt reserve accounting based on bad-debt performance in the most recent past year. [1] ● On caution: General bad-debt reserve accounting based on bad-debt performance over the past three consecutive years (unrecovered ratio over three consecutive years). [2] Substandard: Corporate loans are divided into two categories: those that are not covered by collateral or guarantees and everything else, and then bad-debt performance is calculated. [3] ● Regarding doubtful, quasi-bankrupt and bankrupt, individual reserves are recorded in amounts required to cover the balance when amounts recoverable through collateral and guarantees are written off from the loan amount. [4] Then, for the category IV portion, this amount is directly written off from the loan amount. [5] 6 Operational Data Standards for reserve for bad debt 121 6. Data on Market Value of Securities (Company Total) ✳Market Value of Securities (General Account) … p. 168, Data on Market Value of Securities in Separate Account (Individual Variable Insurance) … p. 177, Market Value of Securities in Separate Account (Separate Account for Individual Variable Annuities) … p. 179 1. Net valuation gain/loss from trading securities Millions of Yen As of March 31 2009 2008 2007 Carrying value on balance sheets Trading securities Net valuation gain/loss included in profits/loss Carrying value on balance sheets Net valuation gain/loss included in profits/loss Carrying value on balance sheets Net valuation gain/loss included in profits/loss ¥1,345,461 ¥(201,841) ¥1,849,018 ¥(403,448) ¥2,337,929 ¥(82,576) Notes: 1. The carrying value on the balance sheets of assets held in trust included in trading securities and the net valuation gain/loss included in profits/loss for the current period include net gain/loss on derivative transactions. 2. The carrying value above excludes cash equivalents and call loans within assets held in trust included in trading securities. 2. Data on market value of securities (Securities with market value other than trading securities) Millions of Yen As of March 31 2009 Book value Policy-reserve-matching bonds Held-to-maturity debt securities Investments in subsidiaries and affiliates Available-for-sale securities Domestic bonds Domestic stocks Foreign securities Foreign bonds Foreign stocks and other securities Available-for-sale securities Monetary receivables purchased Negotiable certificates of deposits Total Domestic bonds Domestic stocks Foreign securities Foreign bonds Foreign stocks and other securities Other securities Monetary receivables purchased Negotiable certificates of deposits Market value ¥16,704,274 ¥17,314,594 ¥ 610,320 28,233 28,341 107 54,454 51,894 (2,560) 13,097,708 13,538,524 440,815 1,358,461 1,375,167 16,706 4,594,431 5,165,040 570,609 6,407,224 6,302,810 (104,413) 5,527,459 5,568,776 41,316 879,764 734,034 (145,729) 318,239 276,233 (42,006) 75,351 75,268 (83) 344,000 344,003 3 ¥29,884,671 ¥30,933,354 ¥1,048,682 16,901,879 17,516,943 615,063 4,648,885 5,216,934 568,048 6,511,195 6,395,965 (115,229) 5,631,430 5,661,930 30,500 879,764 734,034 (145,729) 318,239 276,233 (42,006) 1,160,471 1,183,273 22,802 344,000 344,003 3 As of March 31 6 Operational Data Gain ¥ 643,658 111 — 1,238,208 18,759 1,054,310 164,970 158,333 6,636 136 25 6 ¥1,881,979 635,448 1,054,310 165,783 159,146 6,636 136 26,294 6 Loss ¥ (33,338) (3) (2,560) (797,393) (2,053) (483,701) (269,383) (117,017) (152,366) (42,143) (108) (2) ¥(833,296) (20,384) (486,261) (281,012) (128,646) (152,366) (42,143) (3,491) (2) Book value Market value Net gain/loss ¥17,147,440 ¥17,752,748 ¥ 605,308 40,019 40,162 142 54,454 70,526 16,072 12,168,901 15,745,289 3,576,387 335,066 338,525 3,458 4,796,200 8,000,890 3,204,690 6,137,368 6,516,797 379,429 5,143,688 5,446,754 303,065 993,679 1,070,043 76,364 288,155 276,872 (11,282) 304,111 304,197 86 308,000 308,005 5 ¥29,410,815 ¥33,608,726 ¥4,197,910 16,228,337 16,802,361 574,023 4,850,654 8,071,416 3,220,762 6,356,382 6,732,025 375,643 5,362,702 5,661,981 299,279 993,679 1,070,043 76,364 288,155 276,872 (11,282) 1,379,285 1,418,044 38,759 308,000 308,005 5 2007 Book value Policy-reserve-matching bonds Held-to-maturity debt securities Investments in subsidiaries and affiliates Available-for-sale securities Domestic bonds Domestic stocks Foreign securities Foreign bonds Foreign stocks and other securities Available-for-sale securities Monetary receivables purchased Negotiable certificates of deposits Total Domestic bonds Domestic stocks Foreign securities Foreign bonds Foreign stocks and other securities Other securities Monetary receivables purchased Negotiable certificates of deposits Net gain/loss 2008 Market value Net gain/loss ¥17,252,365 ¥17,515,888 ¥ 263,522 83,763 83,420 (342) 54,454 103,650 49,195 11,633,528 18,804,346 7,170,818 192,403 193,969 1,566 4,629,397 11,035,208 6,405,811 5,694,374 6,445,711 751,336 4,866,987 5,304,914 437,926 827,387 1,140,796 313,409 303,087 315,154 12,066 312,264 312,303 38 502,000 501,998 (1) ¥29,024,111 ¥36,507,305 ¥7,483,193 16,373,619 16,620,462 246,843 4,683,851 11,138,858 6,455,007 5,836,449 6,587,582 751,133 5,009,061 5,446,785 437,723 827,387 1,140,796 313,409 303,087 315,154 12,066 1,325,103 1,343,247 18,143 502,000 501,998 (1) Gain ¥ 343,500 16 49,195 7,218,034 1,688 6,437,499 766,652 441,552 325,099 12,146 44 4 ¥7,610,747 322,354 6,486,695 767,165 442,065 325,099 12,146 22,382 4 Loss ¥ (79,977) (359) — (47,216) (122) (31,688) (15,315) (3,625) (11,689) (79) (5) (5) ¥(127,553) (75,510) (31,688) (16,031) (4,341) (11,689) (79) (4,238) (5) Note: This table includes negotiable certificates of deposits and other items deemed appropriate to be handled as securities under the Financial Instruments and Exchange Act. 122 Gain ¥ 625,563 171 16,072 3,866,354 3,538 3,363,417 497,619 328,234 169,384 1,685 87 5 ¥4,508,161 588,688 3,379,490 498,784 329,399 169,384 1,685 39,507 5 Loss ¥ (20,254) (28) — (289,966) (79) (158,727) (118,189) (25,168) (93,020) (12,967) (1) (0) ¥(310,250) (14,664) (158,727) (123,141) (30,120) (93,020) (12,967) (748) (0) 6. Data on Market Value of Securities (Company Total), continued Book value of securities with market value unavailable Millions of Yen As of March 31 2009 Policy-reserve-matching bonds ¥ 2008 — Held-to-maturity debt securities ¥ 2007 — ¥ — — Other — — Unlisted foreign bonds — — — — — 294,101 295,777 1,104,965 Available-for-sale securities — 181,355 Investments in subsidiaries and affiliates 738,887 529,625 Unlisted domestic stocks (excluding stocks sold over-the-counter) 272,742 171,852 168,879 Unlisted foreign stocks (excluding stocks sold over-the-counter) 662,385 410,623 225,640 Unlisted foreign bonds — — 156,410 135,105 ¥1,286,321 Total — 169,837 Other ¥1,032,988 ¥825,403 Note: Of securities with market value unavailable, the net loss on currency exchange valuation of assets denominated in foreign currencies was as follows: March 31, 2009: ¥30,353 million; March 31, 2008: ¥53,280 million; and March 31, 2007: ¥7,089 million. Policy-reserve-matching bonds We have established the following target portfolios that correspond to specific types of insurance products. • Regarding single-payment products (single-payment endowment, single-payment annuities, single-payment whole life insurance) and guaranteed fixed-term rate group annuities, we have established an Asset/Liability Management (ALM) portfolio that aims to avoid interest fluctuation risks by predicting future cash flow from debt securities. • In terms of other types of insurance, we have established an ALM portfolio that has a goal of expanding long-term future revenue by evaluating debt characteristics and operating within a specific range of risk allowance. Given the characteristics of these insurance products and this type of asset management, we have specified and sub-categorized the following insurance policies based on “Temporary Treatment of Accounting and Auditing Concerning Policy-reserve-matching Bonds in the Insurance Industry” (Japan Institute of Certified Public Accountants Industry Audit Committee Release No. 21). • All insurance policies for single-payment products other than variable assumed rate type insurance • For group annuities other than guaranteed fixed-term rate policies, policy reserves corresponding to cash flow projections over the next 15 years • Policies with less than 30 years remaining, except for those listed above, variable assumed rate type individual insurance and guaranteed fixed-term rate group annuities. Concerning bonds held for the purpose of controlling the respective duration (level of market price fluctuations against fluctuations in interest rates) of bonds that fit into these sub-categories, the Risk Management Committee regularly confirms that the policy reserves and the duration are in a state of general consistency. Based on such confirmation, we classify most yen-based debt securities into policy-reserve-matching bonds. 7. Data on Market Value of Assets Held in Trust (Company Total) Millions of Yen As of March 31 2007 ¥114,637 ¥170,507 ¥195,592 114,637 170,507 195,592 — — — — — — Loss — — — Carrying value on balance sheets Market value Net unrealized gain/loss Notes: 1. Market value calculations are based on prices rationally calculated by the trustee of assets held in trust. 2. The carrying value on the balance sheets includes net gain/loss related to derivatives transactions within assets held in trust. Assets held in trust for trading purposes 6 Operational Data 2008 Gain Assets held in trust 2009 Millions of Yen As of March 31 2009 2008 2007 Carrying value on balance sheets Assets held in trust for trading purposes Net valuation gain/loss included in profits/loss Carrying value on balance sheets Net valuation gain/loss included in profits/loss Carrying value on balance sheets Net valuation gain/loss included in profits/loss ¥114,637 ¥(44,531) ¥170,507 ¥(44,744) ¥195,592 ¥(2,821) Note: The carrying value of assets held in trust on the balance sheets and the net valuation gain/loss included in profits/loss for the current period include net gain/loss related to derivatives transactions. Assets held in trust classified as held to maturity, held for reserves and other No data as there was not an ending balance from the fiscal year ended March 31, 2007 to the fiscal year ended March 31, 2009. 123 8. Data on Market Value of Derivatives Transactions, Combined Total with and without Hedge Accounting Applied (Company Total) ✳Qualitative Information on Derivatives Transactions (General Account: Excludes Proprietary Trading Securities) … p. 170, Qualitative Information on Derivatives Transactions (Separate Account for Individual Variable Insurance) … p. 177, Qualitative Data on Derivatives Transactions in Separate Account (Separate Account for Individual Variable Annuities) … p. 179 1. Breakdown of gain/loss (Hedge accounting applied/Hedge accounting not applied) Millions of Yen Interest As of March 31 Hedge accounting applied Currencies Stocks Bonds 2009 — Other Total ¥ — ¥ (35,146) ¥ ¥— ¥— ¥ (35,146) Hedge accounting not applied Total As of March 31 Hedge accounting applied — ¥ — (82,907) ¥(118,054) — ¥— — ¥— (81,574) ¥(116,720) ¥ 248 ¥ 14,520 1,333 ¥1,333 2008 ¥ — ¥— ¥— ¥ 14,769 Hedge accounting not applied Total As of March 31 Hedge accounting applied (19) ¥ 229 21,722 ¥ 36,243 — ¥— — ¥— 21,556 ¥ 36,325 ¥ 81 ¥ (45,106) (146) ¥ (146) 2007 ¥ — ¥— ¥— ¥ (45,024) Hedge accounting not applied Total (110) ¥ (29) (2,931) ¥ (48,037) 482 ¥ 482 — ¥— — ¥— (2,559) ¥ (47,584) Note: Net gain/loss from applying mark-to-market hedge accounting included in hedge accounting applied, and net gain/loss included in hedge accounting not applied, other than deferred gain to be amortized from the discontinuation of hedge accounting, are recorded in the statements of income. 2. Interest-rate related Millions of Yen As of March 31 Over-the-counter Interest-rate swap Variable interest-rate payment Fixed interest-rate receipt Variable interest-rate receipt Fixed interest-rate payment Total Contract amount Over 1 year Market value Net gain/loss Contract amount Over 1 year Market value Net gain/loss Net gain/loss 2009 ¥— — — — — — — — ¥— 2008 ¥55,100 5,100 186 186 50,000 — 42 42 ¥ 229 2007 ¥105,100 55,100 (163) (163) 100,000 50,000 134 134 ¥ (29) Note: Gain/loss show the current market value or present value of swap transactions. (Reference) Interest-rate swap contracts by maturity dates Millions of Yen, % As of March 31 1 year or less 6 Operational Data 2009 2008 2007 124 Notional amount (receipts fixed/payments variable) Average fixed rate (receipt) Average variable rate (payment) Notional amount (payments fixed/receipts variable) Average fixed rate (payment) Average variable rate (receipt) Notional amount (receipts fixed/payments variable) Average fixed rate (receipt) Average variable rate (payment) Notional amount (payments fixed/receipts variable) Average fixed rate (payment) Average variable rate (receipt) Notional amount (receipts fixed/payments variable) Average fixed rate (receipt) Average variable rate (payment) Notional amount (payments fixed/receipts variable) Average fixed rate (payment) Average variable rate (receipt) ¥ — —% — ¥ — —% — ¥50,000 0.49% 0.97 ¥50,000 0.64% 0.97 ¥50,000 0.36% 0.63 ¥50,000 0.47% 0.63 Due after Due after Due after Due after 1 year through 3 years through 5 years through 7 years through 3 years 5 years 7 years 10 years ¥ — —% — ¥ — —% — ¥ — —% — ¥ — —% — ¥50,000 0.49% 0.63 ¥50,000 0.64% 0.63 ¥— —% — ¥— —% — ¥— —% — ¥— —% — ¥— —% — ¥— —% — ¥— —% — ¥— —% — ¥— —% — ¥— —% — ¥— —% — ¥— —% — ¥ — —% — ¥ — —% — ¥5,100 1.96% 0.90 ¥ — —% — ¥5,100 1.96% 0.57 ¥ — —% — Due after 10 years ¥— —% — ¥— —% — ¥— —% — ¥— —% — ¥— —% — ¥— —% — Total ¥ — —% — ¥ — —% — ¥ 55,100 0.62% 0.96 ¥ 50,000 0.64% 0.97 ¥105,100 0.50% 0.63 ¥100,000 0.56% 0.63 8. Data on Market Value of Derivatives Transactions, Combined Total with and without Hedge Accounting Applied (Company Total), continued 3. Currency-related Millions of Yen As of March 31 Over-the-counter 2009 Foreign Sold U.S. Dollar 2008 2007 forward Contract amount ¥2,956,535 ¥2,615,735 Over 1 year exchange — 277,312 — 2,985,446 2,602,796 1,665,345 Market value contracts Net gain/loss ¥1,652,834 12,939 (12,510) 1,278,642 55,880 401,349 — — — Market value 1,357,768 55,432 433,494 Net gain/loss (79,125) 448 (32,144) Contract amount 4,751,205 2,698,685 2,080,048 Over 1 year Other, net (28,911) Contract amount Over 1 year Euro — 277,312 — 4,870,941 2,685,125 2,125,501 Market value Net gain/loss Purchased (45,452) 6,655 214,916 45,786 — — — Market value 6,778 216,071 46,015 Net gain/loss 122 1,154 229 Contract amount 36,489 26,799 37,763 Over 1 year Euro 13,559 Contract amount Over 1 year U.S. Dollar — — — 35,746 27,083 37,860 Market value Net gain/loss Other, net (119,735) (743) 284 96 Contract amount 46,320 243,112 92,467 Over 1 year — — — 45,772 244,552 92,940 1,439 473 Market value Net gain/loss (548) 6 Operational Data 125 8. Data on Market Value of Derivatives Transactions, Combined Total with and without Hedge Accounting Applied (Company Total), continued 3. Currency-related, continued Millions of Yen As of March 31 Over-the-counter 2009 Currency Sold Call U.S. Dollar Contract amount 2007 Over 1 year — ¥ 110,209 [—] option ¥ 2008 [121] ¥ 365,955 [339] — — — [—] [—] — 153 238 Net gain/loss Euro [—] Market value — (31) 100 Contract amount Over 1 year — — — [—] [—] [—] — — [—] [—] Market value — — — Net gain/loss Other, net — [—] — — — Contract amount — 110,209 365,955 [—] Over 1 year [121] [339] — — — [—] [—] [—] Market value 238 (31) 100 Contract amount — — — [—] [—] — — — [—] [—] [—] Market value — — — Net gain/loss U.S. Dollar 153 — [—] Put — Net gain/loss — — — Over 1 year Euro Contract amount — — [1,892] Over 1 year 38,952 [—] [—] — — — [—] [—] 4,469 — — Net gain/loss (2,576) — — Contract amount 38,952 — — [1,892] Other, net [—] Market value [—] [—] Over 1 year — — — [—] [—] [—] 126 4,469 — — Net gain/loss 6 Operational Data Market value (2,576) — — 8. Data on Market Value of Derivatives Transactions, Combined Total with and without Hedge Accounting Applied (Company Total), continued 3. Currency-related, continued Millions of Yen As of March 31 Over-the-counter 2009 Currency Purchased Call U.S. Dollar Contract amount option ¥ 2008 — ¥ 2007 — ¥ — [—] Over 1 year [—] [—] — — — [—] [—] — — — Net gain/loss Euro [—] Market value — — — Contract amount Over 1 year — — — [—] [—] [—] Market value — — — [—] [—] [—] — — — Net gain/loss — — — Contract amount — — — [—] Other, net [—] [—] Over 1 year — — — [—] [—] [—] Market value — — — 353,628 551,045 720,105 [11,251] [5,025] — 60,114 — [—] [2,462] [—] Market value 19,711 33,504 1,857 Net gain/loss 1,693 22,253 (3,167) 38,952 253,104 — [1,365] U.S. Dollar — — [18,018] Put — Net gain/loss [5,202] [—] — 94,914 — Contract amount Over 1 year Euro Contract amount Over 1 year [—] [—] 4,469 3,805 — Net gain/loss 3,104 (1,396) — 392,580 824,160 720,105 [19,383] Other, net [2,876] Market value [16,775] Contract amount Over 1 year — 155,028 [—] Market value [5,338] [5,025] — [—] 4,797 21,279 (3,167) Contract amount 1,610 567 4,862 1,610 567 4,862 Market value (4) 8 9 (4) 8 Contract amount 1,610 567 4,862 Over 1 year Other, net 9 Net gain/loss 1,610 567 4,862 Market value Net gain/loss Total 6 Operational Data swap 1,857 Over 1 year U.S. Dollar 38,055 Net gain/loss Currency 24,180 Net gain/loss 9 (4) 9 ¥(118,054) (4) ¥ 36,243 8 8 ¥ (48,037) Notes: 1. Figures in brackets show options fees recorded on the non-consolidated balance sheets. However, these options fees include already contracted options as of the balance sheet date. 2. Net gain/loss shows the difference between the contract amount and market value for forward agreements, the difference between the options fee and market value for option transactions, and the current market value for swap transactions. 127 8. Data on Market Value of Derivatives Transactions, Combined Total with and without Hedge Accounting Applied (Company Total), continued 4. Stock-related Millions of Yen As of March 31 Exchange 2009 Stock index futures Sold Contract value ¥ 2008 — Over 1 year ¥ 2007 — ¥ — — Net gain/loss — — Market value — — — — — — 13,982 24,762 33,245 — — — Market value 15,315 24,615 33,727 Net gain/loss Purchased 1,333 (146) 482 Contract value Over 1 year Total Net gain/loss ¥ 1,333 Note: Net gain/loss shows the difference between the contracted amount and market value for future agreements. 5. Bond-related No data as there was not an ending balance from the fiscal year ended March 31, 2007 to the fiscal year ended March 31, 2009. 6. Others 6 Operational Data No data as there was not an ending balance from the fiscal year ended March 31, 2007 to the fiscal year ended March 31, 2009. 128 ¥ (146) ¥ 482 9. Operating Income (Ordinary Income) Millions of Yen Millions of Yen Fiscal years ended March 31 2009 Capital gain ¥ 88,609 ¥ Gain on proprietary trading securities — Gain from assets held in trust — Gain from trading securities — Gain on sales of securities 88,609 Gain from derivative financial instruments, net — Foreign exchange gain, net — Other capital gain — Capital loss 832,636 Loss on proprietary trading securities 0 Loss from assets held in trust 55,871 Loss from trading securities — Loss on sales of securities 119,523 Loss on valuation of securities 527,986 Loss from derivative financial instruments, net 113,319 Foreign exchange loss, net 15,934 Other capital loss — Net capital gain/loss B (744,026) Income including net capital gain/loss A+B (204,138) Non-recurring income 564,616 Income from reinsurance premiums — Reversal of contingency reserve 564,616 Other non-recurring income — Non-recurring loss 241,264 Reinsurance premiums — Provision for contingency reserve — Provision for individual allowance for doubtful accounts — Provision for allowance for specialized overseas debts — Write-off of loans 2 Other non-recurring loss 241,261 Non-recurring income and loss C 323,351 Operating income A+B+C ¥ 119,212 ¥ 2008 2007 108,796 ¥ 123,913 7 83 — 22,108 — — 106,977 101,722 — — — — 1,812 — 229,857 242,873 — — 21,483 — — — 93,274 102,305 39,211 11,861 63,729 127,398 12,158 1,273 — 34 (121,060) (118,960) 516,479 611,090 21,308 — — — — — 21,308 — 226,074 280,484 — — — — — — — — — 3 226,074 280,481 (204,765) (280,484) 311,714 ¥ 330,606 *“Provision for policy reserves” excludes provision for contingency reserve and provision of premium reserve based on Article 69, Section 5 of the Ordinance for Enforcement of Insurance Business Law. (Reference) Breakdown of other ordinary revenues and others Millions of Yen Fiscal years ended March 31 Other ordinary revenues Gain (loss) on foreign exchange in relation to foreign currency denominated insurance products Other ordinary expenditures Gain (loss) on foreign exchange in relation to foreign currency denominated insurance products Other capital gain Gain (loss) on foreign exchange in relation to foreign currency denominated insurance products Other capital loss Gain (loss) on foreign exchange in relation to foreign currency denominated insurance products Other non-recurring income Impact of change to monthly valuation of policy reserves Reversal of for individual allowance for doubtful accounts Other non-recurring loss Policy reserve based on Article 69, Section 5 of the Ordinance for Enforcement of Insurance Business Law 2009 2008 2007 ¥ — ¥ — ¥ 34 ¥ — — — ¥ 1,812 ¥ 34 — ¥ — — 1,812 ¥ 1,812 ¥ — — ¥ — — ¥ 1,812 — ¥ — 34 ¥ — — — ¥ 21,308 ¥ 34 — — 21,300 — — ¥241,261 8 ¥226,074 — ¥280,481 241,261 226,074 280,481 6 Operational Data Fiscal years ended March 31 2009 2008 2007 Ordinary revenues ¥6,516,451 ¥6,402,512 ¥6,390,219 Income from insurance and reinsurance premiums 5,036,774 4,890,087 4,854,303 Insurance premiums 5,035,543 4,889,029 4,853,646 Reinsurance premiums 1,230 1,058 657 Investment income 1,158,468 1,245,648 1,285,810 Interest, dividends and other income 1,148,493 1,234,533 1,156,348 Gain from redemption of securities 5,047 10,153 46,455 Other investment income 4,927 962 1,500 Gain from separate accounts, net — — 81,506 Other revenues 321,208 266,776 250,071 Income from annuity riders 8,619 6,388 6,039 Income from deferred benefits 279,850 234,872 225,138 Reversal of policy reserve for outstanding claims 14,863 7,953 — Reversal of policy reserves — — — Reversal of accrued severance indemnities — — — Other revenues 17,875 17,560 18,894 Other ordinary revenues — — 34 Ordinary expenditures 5,976,563 5,764,972 5,660,168 Insurance claims and other payments 4,036,829 4,212,938 3,831,149 Death and other claims 1,313,660 1,394,957 1,218,010 Annuity payments 506,864 475,766 439,395 Health and other benefits 832,280 822,921 779,972 Surrender benefits 1,102,075 1,166,937 1,061,274 Other refunds 280,608 350,997 331,384 Reinsurance premiums 1,339 1,356 1,113 Provision for policy reserves* 497,086 187,492 738,702 Investment expenses 413,306 325,997 53,499 Interest expenses 3,315 6,007 5,333 Loss from redemption of securities 6,240 2,950 1,802 Transfer to general allowance for doubtful accounts — 4,822 — Depreciation for rental real estate and other assets 27,160 27,331 26,249 Other investment expenses 23,261 18,909 20,114 Loss from separate accounts, net 353,329 265,975 — Operating expenses 563,271 552,888 547,501 Other expenditures 466,070 483,842 489,314 Deferred benefit payments 367,581 390,080 384,946 Taxes 36,536 34,758 35,223 Depreciation 42,858 39,235 39,261 Provision for accrued severance indemnities 5,177 6,515 16,382 Deferred asset amortization (Insurance Business Law, Article 113) — — — Other expenditures 13,917 13,252 13,500 Other ordinary expenditures — 1,812 — Ordinary income (core operating profit) A 539,887 637,540 730,050 129 MAIN BUSINESS INDICATORS 10. Policies in Force and New Policies 1. Policies in force (1) Number of policies Number of Policies, % As of March 31 2009 Number of policies Individual insurance Individual annuities 2008 Rate of increase (decrease) 12,047,441 2,827,125 (3.3)% 4.0 Number of policies 2007 Rate of increase (decrease) 12,458,759 2,719,012 (3.9)% 3.0 Number of policies 12,962,744 2,640,382 (2) Policy amount Millions of Yen, % As of March 31 2009 Rate of increase (decrease) Amount Individual insurance Individual annuities Group insurance Group annuities 2008 ¥192,373,811 17,470,385 87,430,483 9,151,763 (6.7)% 2.0 2.4 1.2 Amount 2007 Rate of increase (decrease) ¥206,175,015 17,125,059 85,419,797 9,043,005 (7.5)% 0.9 1.2 0.2 Amount ¥222,960,663 16,965,522 84,396,970 9,029,249 Notes: 1. The amount of individual annuities is the total of annuity resources at the start of annuity payments for policies prior to the start of annuity payments and policy reserves for policies after the start of annuity payments. 2. The amount of group annuities is equal to the policy reserve balance. 2. New policies in force (1) Number of policies Number of Policies Fiscal years ended March 31 Individual insurance Individual annuities 2009 1,070,999 228,146 2008 1,045,127 187,279 2007 1,037,813 193,739 Note: The number of policies includes policies that were converted into new policies. Nippon Life will handle enrollment in the comprehensive medical rider that it has been selling since October 2008 through new policies, conversions and a system of rider changes. The number of rider changes in the fiscal year under review was 538,241. In addition, there were rider change applications other than those mentioned above and there were 252,943 policies that took effect after the change. (2) Policy amount Millions of Yen Fiscal years ended March 31 Individual insurance Individual annuities Group insurance Group annuities New policies, including conversions New policies, excluding conversions By conversion New policies, including conversions New policies, excluding conversions By conversion New policies, including conversions New policies, excluding conversions 2009 ¥ 6,018,582 7,441,092 (1,422,509) 1,328,519 1,351,513 (22,993) 1,044,842 1,044,842 [5,681,115] 2008 ¥ 5,318,601 7,379,579 (2,060,977) 1,132,032 1,147,229 (15,197) 1,359,503 1,359,503 [5,907,231] 2007 ¥10,140,242 10,505,664 (365,421) 1,309,298 1,318,745 (9,446) 1,294,875 1,294,875 [7,234,929] By conversion New policies, including conversions New policies, excluding conversions By conversion 1,119 1,119 6,450 6,450 1,014 1,014 6 Operational Data Notes: 1. The amount for new policies for individual annuities represents annuity resources at the start of annuity payments. 2. Figures in brackets in group insurance are amounts that include the increase in premiums and the net increase in premiums from midterm enrollments and withdrawals. 3. Figures for group annuities for new policies represent the first premium revenues. 11. Annualized Premiums 1. Policies held Millions of Yen, % As of March 31 2009 Amount Individual insurance Individual annuities Total Medical life insurance, living benefits and others ¥2,458,565 709,870 ¥3,168,435 ¥ 575,263 2008 Rate of increase (decrease) (3.7)% 11.0 (0.8)% 1.2% Amount ¥2,552,834 639,653 ¥3,192,488 ¥ 568,620 2007 Rate of increase (decrease) (4.2)% 4.2 (2.6)% 0.6% Amount ¥2,664,885 613,958 ¥3,278,844 ¥ 565,009 Notes: 1. Annualized premiums are one-time insurance premiums factored according to the payment method and calculated as insurance premiums for one year. (Single payments are insurance premiums divided by the term of coverage.) 2. Medical coverage and living benefits include medical benefits (hospitalization and surgery benefits, etc.), living benefits (limited illness and nursing care benefits, etc.) and premium payment waivers (excluding disability and including specified diseases and nursing), and are recorded as annualized premiums. 130 11. Annualized Premiums, continued 2. New policies Millions of Yen, % Fiscal years ended March 31 2009 Rate of increase (decrease) Amount Individual insurance Individual annuities Total Medical life insurance, living benefits and others 2008 ¥ 163,951 100,816 ¥264,767 ¥ 45,982 3.8% 86.5 24.9% (4.3)% Amount ¥ 157,921 54,065 ¥211,987 ¥ 48,039 2007 Rate of increase (decrease) (24.1)% (16.2) (22.3)% (4.4)% Amount ¥ 208,146 64,533 ¥272,679 ¥ 50,245 Notes: 1. Annualized premiums are one-time insurance premiums factored according to the payment method and calculated as insurance premiums for one year. (Single payments are insurance premiums divided by the term of coverage.) 2. Medical coverage and living benefits include medical benefits (hospitalization and surgery benefits, etc.), living benefits (limited illness and nursing care benefits, etc.) and premium payment waivers (excluding disability and including specified diseases and nursing), and are recorded as annualized premiums. 3. “New policies” is equal to new policies plus the net increase due to policy conversions. 12. New Policies by Product Number of Policies, Millions of Yen Fiscal years ended March 31 2009 Policies Individual insurance Mortality insurance Term life insurance Whole life insurance Single-payment whole life insurance with variable accumulation rate Whole life insurance with term rider Term life insurance with dread disease term rider Whole life insurance with dread disease term rider Cancer insurance Hospitalization medical insurance Increasing term life insurance Medical Iife insurance Single-payment whole life insurance for retirement Medical life insurance for retirement Term rider Life and mortality insurance Endowment insurance Term life with survival benefit insurance Melody Term life with survival benefit insurance BIG YOU Juvenile insurance Multi-increase endowment rider Term rider with survival benefit Pure endowment Family pure endowment Subtotal Amount Policies 2007 Amount Policies Amount [878,030] ¥[17,754,897] 390,711 6,149,358 [26,314] [1,603,603] 22,668 1,308,402 [124,545] [649,504] 70,737 385,691 [831,850] ¥[16,910,611] 351,004 5,771,487 [29,794] [1,896,676] 25,625 1,562,209 [121,197] [624,743] 66,283 380,614 [798,652] ¥[17,730,173] 464,065 8,437,883 [29,248] [1,630,989] 25,191 1,316,297 [82,837] [537,185] 51,607 391,708 13,934 [665,100] 235,235 124,547 [15,223,091] 4,194,853 8,450 [617,998] 196,235 88,666 [14,165,568] 3,687,414 8,421 [587,692] 288,392 80,549 [14,808,086] 6,056,483 — — — — 41 262 — 18,417 24,396 3,196 533 — 3,110 — 122,052 34 — 18,721 32,908 670 532 — 3,226 — 24,658 33 26 29,140 45,120 13,578 663 194 5,540 — 540,076 41 348 1,247 [7,234] 2,579 [192,969] 186,170 [97,570] 96,177 [11,645] 6,239 1,510 513 [26,929] 8,642 [1,477,126] 1,291,733 [398,120] 393,812 [141,843] 70,147 300 1,280 [28,662] 6,893 [213,277] 206,142 [99,391] 98,454 [11,054] 4,856 1,313 525 [105,197] 22,824 [1,818,858] 1,608,091 [429,490] 426,091 [170,212] 73,865 293 1,593 [33,979] 13,004 [239,158] 232,643 [110,339] 109,923 [12,514] 6,415 1,336 765 [125,144] 44,627 [2,264,766] 2,067,779 [459,185] 457,502 [227,221] 117,044 11,651 13,237 10,915 12,201 — — 29,413 42,690 541 [113,859] 57,761 — — [1,070,999] 576,881 398,753 321,945 60 [203,167] 93,778 — — [19,232,024] 7,441,092 47,785 44,132 584 [108,987] 52,102 — — [1,045,127] 557,146 675,999 333,789 66 [197,099] 86,078 — — [18,729,469] 7,379,579 69,928 46,377 643 [122,960] 81,095 3 3 [1,037,813] 696,711 1,001,451 350,730 74 [226,104] 140,978 1 1 [19,994,941] 10,505,664 6 Operational Data Endowment insurance with term rider Kurashi no Hoken 2008 131 12. New Policies by Product, continued Number of Policies, Millions of Yen Fiscal years ended March 31 2009 Policies Nissay annuity 2008 Amount Policies 2007 Amount Policies Amount ¥[1,039,937] [172,351] ¥[1,079,131] [167,872] ¥[1,193,707] 167,044 1,017,310 170,477 1,059,626 166,894 1,178,315 [—] [—] [—] [—] [72] [903] — Annuity focused on survival coverage [169,078] — — — 71 896 — — — — — — 13,351 77,369 21,753 112,149 Individual Variable assumed rate type annuity annuities Accumulation type variable rate annuity 57,854 327,928 Guaranteed minimum maturity benefit equity-indexed annuities 368 1,448 — — — — Nissay investment type annuity 846 4,826 1,577 10,233 4,042 27,383 [228,146] [1,374,140] [187,279] [1,166,735] [193,739] [1,334,143] 226,112 1,351,513 185,405 1,147,229 192,760 Subtotal Group term life insurance 1,318,745 1,044,411 358,437 1,300,376 202,331 1,222,079 93 431 63,063 59,127 222,620 72,795 Consumer credit group insurance Group 170,898 Group credit life insurance — — — — — — Group endowment insurance — — — — — — — — — — — — — — — — — — insurance Group whole life insurance Life insurance for dependents of disabled Annuities rider (group term life insurance) Subtotal Insured pension plans New insured pension plans Insured contributory pension plans — — — — — — 170,991 1,044,842 421,500 1,359,503 424,951 1,294,875 — — — — — — 11,626 86 11,162 63 7,471 66 2,468 9 3,132 10 9,913 22 Defined benefit corporate pension plans — 660 — 2,618 — 747 Group National pension fund insurance — — — — — — annuities Employees’ pension fund insurance — — — — — — Employees’ pension association insurance — — — — — — Group pure endowment insurance — 265 — 3,624 — — Defined contribution pension plans Subtotal — 97 — 133 — 177 14,094 1,119 14,294 6,450 17,384 1,014 Workers’ asset-formation savings insurance 6,657 305 7,644 712 8,489 471 Workers’ Workers’ asset-formation housing funding insurance 1,176 55 1,277 119 1,425 123 asset-formation Workers’ asset-formation benefits savings insurance — — — — — — insurance Workers’ asset-formation fund savings insurance — — — — — — 7,833 360 8,921 832 9,914 595 — — — — — — asset-formation Workers’ asset-formation funding annuities 1,852 85 1,867 98 2,089 140 annuities Subtotal 1,852 85 1,867 98 2,089 140 Medical Individual type 67 0 62 0 57 0 life Group type 2,592 11 11,471 10 19,872 101 2,659 12 11,533 11 19,929 101 — — — — 2,746 697 — — — — 2,746 697 — — — — — — Subtotal 6 Operational Data Workers’ 132 Workers’ asset-formation annuities insurance Subtotal Disability Group disability income insurance income insurance Subtotal Reinsurance assumed Notes: 1. Figures in brackets include policies that were converted into new policies, except for subtotal figures in angle brackets, which exclude policies prior to conversion. 2. Term life insurance includes term life insurance (group type). 3. Whole life insurance includes comprehensive whole life insurance. 4. Term rider includes juvenile term life insurance riders and spouse term life insurance riders. 5. Term rider, multi increase endowment rider, term rider with survival benefit, life insurance for dependents of disabled and employees’ pension association insurance are not included in subtotals. 6. The number of policies for group insurance, group annuities, workers’ asset-formation savings insurance, workers’ asset-formation annuities, medical life insurance, disability income insurance and reinsurance assumed is the number of insured persons. 7. Figures for individual annuities, group insurance (annuities rider) and wo